I'm just taking a look at trading Happs charts with the TMA indicator.
TMA I got from NBobs thread. He made a great system with this. I revised it to suit my own style.
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NB's Thread with TMA
http://www.forexfactory.com/showthread.php?t=274194
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Instead of defining a qualifiying trend with this revised system, I'm more trying to interpret the "Energy" of movement within a given time frame, in this case H4, though this should be applicable to other TF's. In fact I started by successfully scalping with it on the M5. But now I'm using the H4, because it requires less personal energy to monitor throughout the day.
I also find that the H1 will extend or deviate past the outer TMA lines more than the H4.
Right so back to the "Energy" of a movement within a given time frame. Energy and Trend-its nearly the same thing. But the word Trend I find leads to misperceptions, lack of objectivity or clear definition. "Energy" at least in the way that I have to look at it is more easily objectifiable, and it just seems somehow more appropriate to the system I have devised.
I've taken out all of the various extra MA's from NB's 1.0 system, and just left the Happs charts and the TMA.
Why use the Happs charts? Do you need the Happs Charts? No, not really. The Happs Charts do what they do, which is to point out significant price levels. This comes in handy for two reasons:
1) To point out areas of confluence with the TMA lines.
2) To point out areas where, in the case of a deviation, or long extension beyond the outer TMA lines, price is likely to finally reverse itself.
I find it provides more useful information, but not too much information. So Happs can be used or not.
Right so back to the Trend/Energy factor:
1)How is Energy measured?
2)How do the measurements effect the trades?
You can just basically look at the center, blue, TMA line and see what it's doing to get an idea of the larger energy within a given TF.
However, a more objective way to go about it is just to take an equidistant channel and narrow it out. You want to place the equidistant channel around the center Blue TMA line at:
1) the open of the last period (use period separators)
2) the close of the last period.
(In the case of H4 periods are separated out week by week.)
So now you can look at what the center TMA line is doing in relation to the equidistant channel lines in the current week. It gives you a really clear picture of the overall energy of the movement in the TF being used.
Okay, so now I see how trend/energy is measured, how does it effect the trades?
First of all, you want to sell at the upper TMA line when the energy is either neutral or bearish.
You want to buy at the lower TMA line when the energy is either neutral or bullish.
(thesre are just the basic ideas, not exact rules)
The example chart shows an AU H4 sell trade, where I entered right at the upper TMA line, without waiting for further confirmation, like crossing another MA etc...
I let myself be more aggressive with entry because I measured the larger energy was bearish. If the energy was bullish, I wouldn't haven't been so quick to enter. So basically when the overall trend/energy is on my side I'm trading price levels, rather than waiting for more confirmation.
If the trend/energy is steeply against me I most likely won't trade against it. If its more neutral or slightly against me, then I'm more given to wait for some confirmed movement back into the TMA channel. Although in a perfectly flat situation it seems OK to trade price.
This is H4, need to leave some room for volatility and deviation in any case. Keep the position size reasonable, and these seem to be high percentage plays.
**Note the template provide is set to AUD USD Happs levels. If it is applied to another currency pair-you must chage the historical high and low price in the Happs indicator to suit that pair.
______________________________________
So thats it, I guess we'll see how it goes.
TMA I got from NBobs thread. He made a great system with this. I revised it to suit my own style.
_________________________________________________
NB's Thread with TMA
http://www.forexfactory.com/showthread.php?t=274194
_________________________________________________
Instead of defining a qualifiying trend with this revised system, I'm more trying to interpret the "Energy" of movement within a given time frame, in this case H4, though this should be applicable to other TF's. In fact I started by successfully scalping with it on the M5. But now I'm using the H4, because it requires less personal energy to monitor throughout the day.
I also find that the H1 will extend or deviate past the outer TMA lines more than the H4.
Right so back to the "Energy" of a movement within a given time frame. Energy and Trend-its nearly the same thing. But the word Trend I find leads to misperceptions, lack of objectivity or clear definition. "Energy" at least in the way that I have to look at it is more easily objectifiable, and it just seems somehow more appropriate to the system I have devised.
I've taken out all of the various extra MA's from NB's 1.0 system, and just left the Happs charts and the TMA.
Why use the Happs charts? Do you need the Happs Charts? No, not really. The Happs Charts do what they do, which is to point out significant price levels. This comes in handy for two reasons:
1) To point out areas of confluence with the TMA lines.
2) To point out areas where, in the case of a deviation, or long extension beyond the outer TMA lines, price is likely to finally reverse itself.
I find it provides more useful information, but not too much information. So Happs can be used or not.
Right so back to the Trend/Energy factor:
1)How is Energy measured?
2)How do the measurements effect the trades?
You can just basically look at the center, blue, TMA line and see what it's doing to get an idea of the larger energy within a given TF.
However, a more objective way to go about it is just to take an equidistant channel and narrow it out. You want to place the equidistant channel around the center Blue TMA line at:
1) the open of the last period (use period separators)
2) the close of the last period.
(In the case of H4 periods are separated out week by week.)
So now you can look at what the center TMA line is doing in relation to the equidistant channel lines in the current week. It gives you a really clear picture of the overall energy of the movement in the TF being used.
Okay, so now I see how trend/energy is measured, how does it effect the trades?
First of all, you want to sell at the upper TMA line when the energy is either neutral or bearish.
You want to buy at the lower TMA line when the energy is either neutral or bullish.
(thesre are just the basic ideas, not exact rules)
The example chart shows an AU H4 sell trade, where I entered right at the upper TMA line, without waiting for further confirmation, like crossing another MA etc...
I let myself be more aggressive with entry because I measured the larger energy was bearish. If the energy was bullish, I wouldn't haven't been so quick to enter. So basically when the overall trend/energy is on my side I'm trading price levels, rather than waiting for more confirmation.
If the trend/energy is steeply against me I most likely won't trade against it. If its more neutral or slightly against me, then I'm more given to wait for some confirmed movement back into the TMA channel. Although in a perfectly flat situation it seems OK to trade price.
This is H4, need to leave some room for volatility and deviation in any case. Keep the position size reasonable, and these seem to be high percentage plays.
**Note the template provide is set to AUD USD Happs levels. If it is applied to another currency pair-you must chage the historical high and low price in the Happs indicator to suit that pair.
______________________________________
So thats it, I guess we'll see how it goes.
Attached Image (click to enlarge)
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